Market Drivers

[Mysticforex 13]

Today, Japan’s Prime Minister Abe confirmed long simmering rumors that he will delay the second increase in the sales tax hike by 18 months and will dissolve the lower house of the Parliament seeking political support for his broad based agenda of economic reform.

[Mysticforex 13]

This Sunday 30 November could be the most significant day for gold in decades, as Swiss National Bank (SNB) asks Switzerland’s general public whether it should increase gold reserves.

 

A ’yes’ vote would mean that over the next five years SNB would have to buy at least 1500 tonnes of gold, costing approximately $56.3 billion, to meet the minimum 20% asset-value threshold outlined in the referendum. It would also have to repatriate all the Swiss gold held abroad. As a result, some analysts believe prices could climb by 10-15%.

 

The latest polls show that support for the ‘yes’ vote is waning however, with only 38% of voters currently in favor. This is down from a month ago, though polls also show that 15% of the public remain undecided.